Associated Press is shaking up its news bureau in the state capital in Trenton in the wake of the Gov. Jim McGreevy scandal.

Sources say the three members of the bureau are being demoted for what management feels is inadequate news coverage of the recent crisis surrounding McGreevey’s resignation amid a gay lover scandal.

But the cuts are roiling journalists in the Garden State.

Some feel that AP, which has been bleeding red ink in recent years, is looking to cut costs by bouncing veteran reporters.

Some AP customers in the state are up in arms over the demotions of State Capital News Editor John McAlpin and two other veteran reporters in the bureau, Tom “Taco” Bell and Kathy Hennessy.

All three were told Monday that they were being replaced in the state capital, where they covered politics, and reassigned to the Trenton bureau, which has about 24 reporters covering all beats.

“The best we can figure out is that there are three veteran reporters who have covered this collectively for decades and there are younger, more inexperienced reporters taking their place,” said Eric Scott, vice president, news for Millennium Radio Network, which has a chain of radio stations across the state.

He said he’s sent a letter to AP customers, including newspapers, radio and TV stations, asking them to protest the move.

Bob Ingle, Toronto bureau chief for the rival Gannett New Jersey Newspapers said, “I’m an old AP hand and I’ve never seen anything like this.”

“Somebody said something about the AP wanting stronger journalists here. I don’t think the AP has stronger journalists in New Jersey than the three that they have right here,” Ingle added.

As recently as April 2003, McAlpin had been named the AP Employee of the Year.

The trio has been offered jobs in the Trenton news bureau – but it means working night and weekend shifts along with the other 24 reporters in the bureau, and the move is widely seen as a demotion.

The reporters could not be reached for comment.

The New Jersey Bureau Chief, Jodie DeJonge, said, “Journalists change beats all the time and we are making some changes as is frequently done elsewhere in the company.”